Bill > HB820

This bill establishes a new Working Pennsylvanians Tax Credit program that provides state tax relief for low to moderate-income workers. The tax credit is set at 30% of the federal Earned Income Tax Credit (EITC) that a taxpayer receives in the same tax year, and it will apply to tax years beginning after December 31, 2024. To be eligible, taxpayers must have claimed the federal EITC, which is typically available to working individuals and families with low to moderate incomes. If the tax credit amount exceeds a taxpayer's total tax liability, the Pennsylvania Department of Revenue will refund the excess amount, making it a fully refundable credit. For married couples filing separately who are both eligible, the credit can only be claimed by the spouse with the higher tax liability. The bill also authorizes the Department of Revenue to develop rules, regulations, and guidelines for implementing the program. This new tax credit aims to provide additional financial support to working Pennsylvanians by reducing their state tax burden and potentially providing a cash refund.

Budget and Finance

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=820